Index Trends And Stocks In Action For December 30, 2013

Indian Equity markets opened in positive zone as day progressed Nifty build on morning gains and dint see much of action for remaining day. However the boarder market continues to glitter and boom as compare to range bound index. The IT index was in full limelight helped index to cross level of 6300 but other heavyweight like Reliance dint gave much support to market. In our last write up we mentioned about 6330 will act as a barrier and it acted as a barrier as it was not able to cross this level even after a positive start. Nifty closes at weekly high and on daily chart it closed near to highest point of the day. But volumes were dry on daily basis, way below average daily volume and RSI plus other indicators are flattening and contracting this hints listless participation in market. We expect that the markets will continue its range bound trading with consolidation with stock specific movement and this is not unusual this has been the trend for past many years in month of December. For intraday key levels for Nifty on downside is 6290-6250 will are strong supports. On higher side 6330 will act as hurdle and if Nifty sustains above this level we may see some jump as it has acted as strong barrier and next resistance is around 6360.

Reliance Industries (BSE Code: 500325) and its partners BP Plc of UK and Canada's Niko Resources may have to provide a maximum of USD 1.2 billion in bank guarantees over three years to get nearly double the rate for natural gas being produced from the main fields in KG-D6 block. The Cabinet Committee on Economic Affairs (CCEA) had on December 20 decided to allow RIL to almost double the price of natural gas from April, 2014 provided the firm gave a bank guarantee to cover its liability gas-hoarding charges are proved. The stock may remain in focus in today’s trade.

Coal India (BSE Code: 533278) is likely to adopt the public-private partnership (PPP) model to harness the coal-bed methane (CBM) opportunity from its existing mines. Coal India had no restriction in inducting a CBM private operator and the tender inviting expression of interest was expected by March, 2014. The counter may witness some buying in today’s trade.

Having failed to achieve their capex targets last fiscal, three major state-owned firms – SAIL (BSE Code: 500113), NMDC (BSE Code: 526371) and RINL - hope to meet cumulative Rs 15,820 crore target set for the current fiscal. Expressing hope of achieving their targets at a meeting with Finance Minister P Chidambaram recently, Steel Authority of India has said its Rs 11,500 crore capex target for the current fiscal was on track. The counters of SAIL and NMDC may stay in focus in today’s trade.

The Department of Industrial Policy and Promotion (DIPP) has approved Tesco's application to invest in Tata-owned Trent Hypermarket a wholly owned subsidiary of Trent (BSE Code: 500251), paving the way for the clearance of the first foreign investment proposal in multi-brand retail by the Foreign Investment Promotion Board (FIPB) at its upcoming meeting on Monday. The stock is likely to witness buying interest in today’s trade.